I have a micro-business, a small video production company run out of my home that is setup as an S-corp. I normally account for expenses within the same year using a cash basis. I am working on a documentary project that has taken three years to complete and the revenues will not be seen until the fourth year when I can distribute and get sponsorship attached. Over the period of the project I have incurred expenses for out of state travel (airfare, lodging rental cars) and in state travel (mileage).Since all of the out of state travel was paid for on personal credit cards I have not charged those expenses yet to the business. I have planned to pay those particular expenses off and charge them to the business when I realize revenue from the completed project. Same with in state travel. I plan to charge the mileage to the business in the year I receive the revenue.
Is this a sound and correct strategy?
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